ECR Europe Forum '05. The Case for ECR

2005

Shopper at the Core

Shopper based Joint Business Planning

Shopper based Value Chain

Consumer Driven Innovation

2005

What Did ECR Set Out to Achieve 10 Years Ago?

The 1995 value chain analysis opportunity projection• Cost reduction of: 4.8% of consumer sales value

• Inventory reduction of: 42%

• Cost impact of inventory reduction: 0.9% of consumer sales value

• Total cost impact: 5.7% of consumer sales value

The 1999 Transport Optimisation study • Additional benefit: 1.2% of consumer sales value

Total potential cost savings: 6.9%of consumer sales value

2005

Project Overview

Academic Partnership and IBM commissioned to review the Business Case for ECR in Europe:

1. Assess achievements over the last 10 years

• Determine future opportunity for ECR

• Make recommendations for accelerating the adoption of ECR

• Re-energise the ECR communities

2005

Project Components

2005

GCI Scorecard Analysis – What Did We Do?

Reviewed a total of 908 records (Global)

Date: August 2001- February 2005

Balance of retailers / manufacturers

Key outputs:• ECR adoption scores

• Supply side performance indicators

2005

GCI Scorecard Analysis – The Scorecard

2005

0 20 40 60 80 100

Italy

Switzerland

Greece

UK

France

Germany

GCI Scorecard Analysis – Adoption Levels

Significant variation between countries and within countries

Source: GCI Scorecard database

Average

Range

2005

GCI Scorecard Analysis - Highlights

ECR-adopters report:

• An increase of Service Level by +5.7 percentage points…

• ...which means improved by 7%

2005



• Finished Goods Inventory cover reduced by -10 days…

• ...lowered by 20% on average

2005



• Reduced Out of Stocks by 4.9 percentage points…

• ...which means halved

2005

Successful Initiatives Driven Through ECR

On Shelf Availability & Shrinkage

• A leading global retailer quantified €122m saving through the OSA Road Map

• Another global retailer delivered a 75% reduction in shrink across hypermarkets

2005


Global Data Synchronisation

• A leading European retailer delivered 30% productivity improvement in their data management

• A leading Japanese retailer reduced item management costs by $2m

2005


CPFR

• Between a leading Global retailer and a major Health & Beauty manufacturer

• Reduced lead-times from 21 to 11 days

• Increased sales by $8.5m

• Improved instock levels from 87-98%

2005

Project Components

2005

Case Studies – What Did We Do?

37 case studies, retailer-manufacturer collaboration across Western Europe

Range of categories, food and non-food

In-depth interviews with industry leaders

Objective:

• Identify patterns of drivers and barriers to ECR adoption

• Quantify implementation and results

Clear patterns are evident

ECR Europe Forum '05. The Case for ECR

Business

Transcript of ECR Europe Forum '05. The Case for ECR